Singapore legislation

Clause 364

of Insolvency, Restructuring and Dissolution Bill

Clause 364

Meaning of associate

(1)

For the purposes of sections 362, 363 and 365, any question whether a person is an associate of another person is to be determined in accordance with this section.

(2)

A person is an associate of an individual if that person is —

(a)

the individual’s spouse; or

(b)

a relative of —

(i)

the individual; or

(ii)

the individual’s spouse; or

(c)

the spouse of a relative of —

(i)

the individual; or

(ii)

the individual’s spouse.

(3)

A person is an associate of —

(a)

any individual with whom the person is in partnership; and

(b)

any spouse or relative of any individual with whom the person is in partnership.

(4)

A person is an associate of any individual whom the person employs or by whom the person is employed, and for this purpose, any director or other officer of a company is treated as employed by that company.

(5)

A person in the person’s capacity as trustee of a trust is an associate of an individual if the beneficiaries of the trust include, or the terms of the trust confer a power that may be exercised for the benefit of, that individual or an associate of that individual.

(6)

A company is an associate of an individual if that individual has control of it or if that individual and persons who are that individual’s associates together have control of it.

(7)

For the purposes of this section, a person is a relative of an individual if the person is that individual’s brother, sister, uncle, aunt, nephew, niece, lineal ancestor or lineal descendant, treating —

(a)

any relationship of the half blood as a relationship of the whole blood and the stepchild or adopted child of any person as that person’s child; and

(b)

an illegitimate child as the legitimate child of the child’s mother and reputed father.

(8)

References in this section to a spouse include a former spouse.

(9)

For the purposes of this section, an individual is taken to have control of a company (C) if —

(a)

the directors of C or of another company which has control of C (or any of those directors) are accustomed to act in accordance with the individual’s directions or instructions; or

(b)

the individual is entitled to exercise, or control the exercise of, one‑third or more of the voting power at any general meeting of C or of another company which has control of C,and where 2 or more persons together satisfy paragraph (a) or (b), they are taken to have control of C.

(10)

In this section, “company” includes any body corporate (whether incorporated in Singapore or elsewhere), and references to directors and other officers of a company and to voting power at any general meeting of a company have effect with any necessary modifications.

Read in full context — Insolvency, Restructuring and Dissolution Bill →